Unocal permitting first of three pads at Nikolaevsk unit near Ninilchik

Unocal is in the permitting stage for the first exploration pad at its “Red Gas Exploration Project” near Ninilchik on the lower Kenai Peninsula in Southcentral Alaska. The Red well is part of the company’s 2004 south Kenai gas exploration program and will be the company’s first exploration well in the Nikolaevsk unit.

The Red pad is the first in an exploration program that “includes up to three new exploration drilling sites for drilling up to four new subsurface targets,” Unocal told the state in early March, with the Red No. 1 the first well planned.

Unocal said other possible wells in its 2004 south Kenai gas exploration program include: the Middle Happy Valley No. 1 and the Happy Valley Saddle No. 1 from the Happy Valley MID pad and the Blue No. 1 from Blue pad. Happy Valley is Unocal’s discovery in the Deep Creek unit northwest of the Nikolaevsk unit. Unocal said it may drill these additional delineation, appraisal and/or development wells based on drilling results at Red pad. The Blue pad would be the second pad at the Nikolaevsk unit.

The company also said that it is possible that more than one exploration well might be drilled from Red pad, although only the Red No. 1 is currently planned.

Unocal said it will begin site preparation in March, “with drilling planned to begin in early June 2004, depending upon road restrictions.” Drilling is expected to take up to three months.